1. In the context of the family home, distinguish between the resulting trust, constructive trust,
and proprietary estoppel.
A constructive trust in the family home Is imposed on an owner of property and arises in a
situation in which it would be unconscionable for that owner to deny another beneficial
interest in the property. The property owner henceforth holds the property on constructive
trust for the beneficiary. A legal title holder and a situation that would make it
unconscionable for A to deny B an interest in the property makes it a constructive trust. Like
a resulting trust , a constructive trust is exempt from certain formalities requirements , such
as the requirement for writing under s 53(1)(b) of the LPA 1925. As compared to the
resulting trust, , the constructive trust has the advantage that it may give the beneficiary
more than the proportion of the property that he contributed to its price. Rather, the
constructive trust allows the beneficiary to gain an interest in property that reflects the
unconscionability of the legal owner in denying the beneficiary rights in the property.
A resulting trust needs to contribute to the purchase price of the property. This should be
direct financial contributions, mortgage repayments, home repairs and improvements but
NOT domestic contributions. On the other hand proprietary estoppel claims happens when a
representation of assurance as to an interest in the property ; there needs to be a relatively
specific representation made by the owner to the applicant about some current or future
interests In the property. A key difference is that, unlike implied trusts where there is some
artificiality in finding agreements or common intention, for proprietary estoppel there must
be evidence of an actual representation; it cannot be inferred or imputed to parties.
Proprietary estoppel is a legal remedy to enforce a broken promise. To prove proprietary
estoppel you must show four things. – A promise made by one person to another, reliance
upon that promise, and loss suffered by the person when the promise is broken , known as
“detriment”. The elements are very circumstantial based on the case.
A resulting trust is a legal relationship in which one person, known as a resulting trustee, is
the legal owner of an asset but on behalf of another person. For example if a parent lends
their child money to buy a house without a written agreement, the child holds the house on
resulting trust for the parent.
A constructive trust is where one or more people have been wrongfully deprived of their
property or assets. This can be when another person has wrongfully or unfairly received
assets or where the common intention between two or more parties is not reflected by the
legal ownership of an asset. A constructive trust can arise for example if a couple buy a
home together and one of them spends a significant amount of time and money in
renovating the house. That person may be able to claim an increased share of the home in
the event of separation.
2. In advance of the seminar, watch the video problem question.
Please watch the video problem question and come to the seminar prepared to discuss each
of these points. For the first three questions, think practically rather than legally. What is
going on? For the last three questions, put on your legal hat. What are the legal answers and
solutions available?
a) Summarise the key facts.
Boyfriend and girlfriend break up after being together for ten years. His parents gave
him a 10000 deposit for the house but they said the house needs to be in Niels name.
Niel always promised he would put her on the house. Was never put on. She has been
and proprietary estoppel.
A constructive trust in the family home Is imposed on an owner of property and arises in a
situation in which it would be unconscionable for that owner to deny another beneficial
interest in the property. The property owner henceforth holds the property on constructive
trust for the beneficiary. A legal title holder and a situation that would make it
unconscionable for A to deny B an interest in the property makes it a constructive trust. Like
a resulting trust , a constructive trust is exempt from certain formalities requirements , such
as the requirement for writing under s 53(1)(b) of the LPA 1925. As compared to the
resulting trust, , the constructive trust has the advantage that it may give the beneficiary
more than the proportion of the property that he contributed to its price. Rather, the
constructive trust allows the beneficiary to gain an interest in property that reflects the
unconscionability of the legal owner in denying the beneficiary rights in the property.
A resulting trust needs to contribute to the purchase price of the property. This should be
direct financial contributions, mortgage repayments, home repairs and improvements but
NOT domestic contributions. On the other hand proprietary estoppel claims happens when a
representation of assurance as to an interest in the property ; there needs to be a relatively
specific representation made by the owner to the applicant about some current or future
interests In the property. A key difference is that, unlike implied trusts where there is some
artificiality in finding agreements or common intention, for proprietary estoppel there must
be evidence of an actual representation; it cannot be inferred or imputed to parties.
Proprietary estoppel is a legal remedy to enforce a broken promise. To prove proprietary
estoppel you must show four things. – A promise made by one person to another, reliance
upon that promise, and loss suffered by the person when the promise is broken , known as
“detriment”. The elements are very circumstantial based on the case.
A resulting trust is a legal relationship in which one person, known as a resulting trustee, is
the legal owner of an asset but on behalf of another person. For example if a parent lends
their child money to buy a house without a written agreement, the child holds the house on
resulting trust for the parent.
A constructive trust is where one or more people have been wrongfully deprived of their
property or assets. This can be when another person has wrongfully or unfairly received
assets or where the common intention between two or more parties is not reflected by the
legal ownership of an asset. A constructive trust can arise for example if a couple buy a
home together and one of them spends a significant amount of time and money in
renovating the house. That person may be able to claim an increased share of the home in
the event of separation.
2. In advance of the seminar, watch the video problem question.
Please watch the video problem question and come to the seminar prepared to discuss each
of these points. For the first three questions, think practically rather than legally. What is
going on? For the last three questions, put on your legal hat. What are the legal answers and
solutions available?
a) Summarise the key facts.
Boyfriend and girlfriend break up after being together for ten years. His parents gave
him a 10000 deposit for the house but they said the house needs to be in Niels name.
Niel always promised he would put her on the house. Was never put on. She has been
